COVID-19 Couldn’t Stop Robust Quarter for ILS Issuance: Aon

July 29, 2020

Usage of insurance linked securities the first six months of 2020 is already 20 percent higher than all of 2019, underscoring the sector’s momentum and resilience even with the coronavirus pandemic, Aon Securities said in a new report.

Aon traced a total of $2.8 billion in property cat bond limit placed in the 2020 second quarter. For the first six months of the year that number hits the $6.5 million mark. In 2019, $4.5 billion in property cat bond limit was placed for the entire year, Aon said.

Broken down, the property cat bond issuance for the first six months of 2020 encompassed 27 property/casualty transactions completed by 24 sponsors with an average deal size of $241 million, Aon noted. That compares to 23 transactions completed by 21 sponsors in 2019, according to the report.

Aon noted that the new Q2 ILS issuances were interrupted briefly due to COVID-19, but that they were steady overall for the quarter – “a great reminder of the resilience of this market.”

Other report findings:

Aon’s full report is “Insurance-Linked Securities – Q2 2020 Updated.”

Source: Aon